Question

Based on the wage-bracket method, what is the federal income tax
withholding for an employee who is married, paid on a bi-weekly basis,
has two federal withholding allowances, and earns $1,317?

$63
$120
$67

Which of the following groups may not be paid less than the federal
minimum wage?

1.Full-time students
2.Tipped employees
3.State government workers

Which must a company have before hiring employees?

1.Employer Identification Notice
2.Employer Identification Number
3.All the above

An employer designates any 7-day period as a _______ as long as it
begins and ends consistently each week.

1.workweek
2.payday
3.vacation

Answer 1

Federal income tax withholding is based on the number of allowances an employee includes on her W-4 form and the IRS tax withholding tables,or Circular E.

Some state revenue agencies require that you use a system similar to federal income tax withholding to determine state income tax.

Full time students employed in retail, service stores,agriculture, or colleges and universities. An employer with an approved certificate may pay him or her between 85% and 100% of the minimum wage. working hours limited to 8 hours in a day and not more than 20 hours per week.

Tipped employees must earn at least minimum wage for all hours worked, they can be paid $2.13 per hour as long as that plus their tips, equals minimum wage for all hours worked.

Effective January1,2020, the Executive Order 13658 minimum wage rate , which generally must be paid to workers performing work on or in connection with covered federal contracts is $10.80 per hour.

Employee Identification Number is must before hiring employees. Obtain this number from Internal Revenue Service(IRS). This is also known as an Employer Tax ID or Form SS-4. This is a tax number that you as the employer have to set up to run the business.

Work week- A workweek is seven consecutive 24 hour periods. Once a workweek ends, new begins.